Suppose the production function for new technology isAA: = A,°NA" where 0

Technology's role in the production function underscores the influence of advancements of…

Suppose the production function for new technology is Α ▲A¿ = A¿ºÑд” where 0<µ≤1, A¿ is the stock of technology and NA is labour employed in the technology sector. What А must be the value of § for such a model to generate a constant sustained growth rate of output (which depends on NA)?

Suppose the production function for new technology is Α ▲A¿ = A¿ºÑд” where 0<µ≤1, A¿ is the stock of technology and NA is labour employed in the technology sector. What А must be the value of § for such a model to generate a constant sustained growth rate of output (which depends on NA)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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